You bought ten (10) $1,000 face value bonds 3 years ago. The bonds are semi-annual bonds that pay a 4.5% coupon rate. You bought each bond for $982.50 and can now sell those bonds for $1,030.80 each. What is your total dollar return on this investment?
You bought ten (10) $1,000 face value bonds 3 years ago. The bonds are semi-annual bonds that pay a 4.5% coupon rate. You bought each bond for $982.50 and can now sell those bonds for $1,030.80 each. What is your total dollar return on this investment?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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Transcribed Image Text:You bought ten (10) $1,000 face value bonds 3 years ago. The bonds are semi-annual
bonds that pay a 4.5% coupon rate. You bought each bond for $982.50 and can now sell
those bonds for $1,030.80 each.
What is your total dollar return on this investment?
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